Arrow Electronics, Inc.

Technology
Electronic Components
investor.arrow.com

Earnings Score
Moat Score
Safety Score

Market Cap $6.51B
PE 13
Debt $3.27B
Cash $248.00M
EV $9.53B
FCF $995.03M

Earnings

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Sales & Net Margins

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Earnings	$487.40M
EBIT	$890.13M
ROE	8%
ROA	4%
FCF	$995.03M
Equity	$6.04B
Growth Stability	-37%
PE	13.35
PEG	1.82
PB	1.08
P/FCF	6.54
P/S	0.23
Price/Cash	0.04
Debt/Equity	0.54
Debt/FCF	3.29
Net Margins	1%
Gross Margins	12%
Op. Margins	3%
Earnings CAGR	8%
Sales Growth YoY	-15%
Sales Growth QoQ	-1%
Sales CAGR	5%
FCF CAGR	5%
Equity CAGR	3%
Earnings Stability	0.32
Earnings Growth YoY	-49%
Earnings Growth QoQ	-8%

Earnings CAGR 5Y	7%
Sales CAGR 5Y	3%
FCF CAGR 5Y	-9%
Equity CAGR 5Y	5%
Earnings CAGR 3Y	-7%
Sales CAGR 3Y	-7%
FCF CAGR 3Y	76%
Equity CAGR 3Y	4%
Market Cap	$6.51B
Revenue	$28.49B
Assets	$20.93B
Total Debt	$3.27B
Cash	$248.00M
Shares Outstanding	53.01M
EV	9.53B
Earnings Score	15%
Moat Score	62%
Safety Score	59%
Final Score	46%
Working Capital	5.56B
Current Ratio	1.46
Gross Profit	$3.48B
Shares Growth 3y	-11%
Equity Growth QoQ	4%
Equity Growth YoY	9%

Assets & ROA

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Stockholders Equity & ROE

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Arrow Electronics is a global distributor of electronics, connecting suppliers of semiconductors, components, and IT solutions to more than 180,000 small and midsize customers in 85 countries. Arrow is the second- largest semiconductor distributor in the world, and the largest for North American chip distribution, partnering with a third of global chipmakers.

SEC Filings

Direct access to Arrow Electronics, Inc. (ARW) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02

Sector Comparison

How does Arrow Electronics, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Arrow Electronics, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 32%

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Arrow Electronics, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Arrow Electronics, Inc..

Years

Calculation mode

= $14B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$995M	$1B	$1.1B	$1.2B	$1.2B	$1.3B	$1.3B	$1.4B	$1.5B	$1.5B	$1.6B	$16B
DCF		$950M	$906M	$865M	$826M	$788M	$752M	$718M	$685M	$654M	$624M	$6.2B
Value	$14B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	2%	2%	2%	2%	2%	-1%	2%	3%	4%	3%	1%
ROA	-	6%	6%	6%	6%	1%	5%	8%	10%	7%	4%
ROE	-	12%	12%	8%	13%	-4%	11%	21%	25%	15%	8%

Bad Net Margins (1.42%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	4.85	14.6	-41.44	25.38	4.16	1.83	7.82	-33.71	6.12	3.29
Debt over Equity	0.5	0.58	0.62	0.66	0.65	0.61	0.44	0.49	0.67	0.65	0.54
Growth Stability	-	-	-	79%	100%	-37%	100%	100%	100%	87%	-37%

Neutral Debt/FCF ratio (3.29)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.54)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-37%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	2%	1%	13%	12%	-3%	-1%	20%	8%	-11%	3%
Earnings YoY growth	-	-0%	5%	-23%	78%	-128%	-386%	90%	29%	-37%	7%
Equity YoY growth	-	1%	6%	12%	8%	-9%	6%	4%	5%	5%	5%
FCF YoY growth	-	-9%	-62%	-142%	-273%	420%	73%	-73%	-133%	-656%	-9%